Volkswagen: Oddo BHF maintains reduce rating

(CercleFinance.com) - Oddo BHF is by no means impressed by Volkswagen's annual results, which the group published yesterday.


This morning the broker's analysts maintain their reduce rating on the company's preference share, which belongs to the DAX 30. Mentioning the German carmaker's "high level of sensitivity to economic conditions," the broker has a target price of 144 euros for the share.

Admittedly, Oddo BHF welcomes an "impressive" cash generation and a "highly integrated industrial machine running at full speed," not to mention capex that is under control.

However, the group remains "sensitive to the economic situation" and in this context, analysts are concerned about the targets set for 2018, which they consider as "ambitious," in particular due to the rise in raw materials costs, FX effects and "new WLTP test procedures (harmonised vehicle test procedure at a global level) as of 1 September, which are longer, more complex and may in the short term result in a reduction in the diversity of its supply, Oddo's report says. In short, it finishes, saying that "the guidance is very sensitive to volumes and mix."



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